Are Inflation Expectations Currently Well Anchored?
· frbsf.org
The response of market-based long-run inflation expectations to monetary policy is one measure of the perceived credibility of the central bank’s inflation target—its “nominal anchor.” The strength of the nominal anchor in the United States has varied over time between 1999 and 2026, with the post-2022 trajectory suggesting an increasingly strong anchor. This channel may support monetary policy in returning inflation to its 2% target.
FRBSF Economic Letter 2026-32 | November 9, 2026
The response of market-based long-run inflation expectations to monetary policy is one measure of the perceive...